Bharat Heavy Electricals Q2FY21: Lower Turnover, Higher Losses, Focus on Cash and Orders

In Q2FY21, turnover was Rs 3,444 crore, EBITDA was Rs -528 crore, and profit after tax was Rs -556 crore as per the financial performance table in the presentation.

In H1FY21, turnover was Rs 5,340 crore versus Rs 10,439 crore in H1FY20. EBITDA was Rs -1,491 crore versus Rs 281 crore, and profit after tax was Rs -1,453 crore versus Rs -98 crore.

Total order book as on 30.09.20 was Rs 1,07,645 crore, comprising Power Rs 86,920 crore, Industry Rs 12,967 crore, and Exports Rs 7,758 crore.

The company stated that out of the total order book, around 80% orders are executable.

As per the presentation, collectibles were Rs 11,432 crore and contract assets were Rs 23,431 crore in Q2FY21, totaling Rs 34,863 crore.

The presentation stated receivables share as 33% Central Utilities, 49% State Utilities, 11% Private Sector, and 7% Exports.

The company stated it is targeting more than 300 basis points year-on-year reduction in material cost, from 66.9% in FY20 to 63.5% in FY21, and reported other miscellaneous expenses reduced by Rs 410 crore in H1FY21 versus H1FY20.